LandBridge Company LLC $LB is Mad River Investors' 5th Largest Position

Key Points

• Mad River Investors increased its LandBridge stake by 9.1% in the fourth quarter, making LB its 5th-largest position and about 5.9% of the portfolio.
• Analysts are mixed on the stock: the consensus rating is “Hold,” with an average price target of $76.17 after recent target changes and one downgrade to “strong sell.”
• LandBridge missed earnings expectations in its latest quarter, posting $0.11 EPS versus the $0.55 estimate, even though revenue rose 16% year over year; the company also declared a $0.12 quarterly dividend and authorized a $50 million share buyback.

Mad River Investors grew its stake in LandBridge Company LLC (NYSE:LB - Free Report) by 9.1% in the 4th quarter, according to its most recent filing with the SEC. The firm owned 262,934 shares of the company's stock after buying an additional 21,878 shares during the quarter. LandBridge accounts for approximately 5.9% of Mad River Investors' portfolio, making the stock its 5th biggest position. Mad River Investors owned approximately 0.34% of LandBridge worth $12,881,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Comerica Bank boosted its stake in shares of LandBridge by 13.6% in the 3rd quarter. Comerica Bank now owns 1,369 shares of the company's stock valued at $73,000 after buying an additional 164 shares during the period. NewEdge Advisors LLC boosted its stake in shares of LandBridge by 110.6% in the 2nd quarter. NewEdge Advisors LLC now owns 398 shares of the company's stock valued at $27,000 after buying an additional 209 shares during the period. Geode Capital Management LLC boosted its stake in shares of LandBridge by 0.8% in the 2nd quarter. Geode Capital Management LLC now owns 28,971 shares of the company's stock valued at $1,958,000 after buying an additional 230 shares during the period. Osaic Holdings Inc. boosted its stake in shares of LandBridge by 12.5% in the 2nd quarter. Osaic Holdings Inc. now owns 2,701 shares of the company's stock valued at $183,000 after buying an additional 301 shares during the period. Finally, Independent Advisor Alliance boosted its stake in shares of LandBridge by 2.7% in the 4th quarter. Independent Advisor Alliance now owns 17,112 shares of the company's stock valued at $838,000 after buying an additional 456 shares during the period.

Analyst Upgrades and Downgrades

LB has been the subject of several recent research reports. Barclays lifted their price objective on LandBridge from $57.00 to $75.00 and gave the company an "equal weight" rating in a research note on Friday, February 27th. Wells Fargo & Company raised their target price on LandBridge from $90.00 to $92.00 and gave the stock an "overweight" rating in a research report on Wednesday, March 18th. Weiss Ratings reissued a "hold (c)" rating on shares of LandBridge in a research report on Wednesday, April 8th. Piper Sandler reissued a "neutral" rating and set a $66.00 target price (up from $65.00) on shares of LandBridge in a research report on Friday, May 8th. Finally, Zacks Research lowered LandBridge from a "hold" rating to a "strong sell" rating in a research report on Tuesday, April 28th. Three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $76.17.

Insider Buying and Selling at LandBridge

In other news, Director Charles L. Watson sold 13,000 shares of the stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $75.00, for a total value of $975,000.00. Following the completion of the sale, the director directly owned 64,250 shares of the company's stock, valued at approximately $4,818,750. This represents a 16.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders sold 53,350 shares of company stock valued at $3,974,555 over the last three months. 70.42% of the stock is currently owned by corporate insiders.

LandBridge Price Performance

Shares of NYSE LB opened at $75.26 on Wednesday. The firm has a market capitalization of $5.80 billion, a PE ratio of 77.59 and a beta of 0.14. LandBridge Company LLC has a fifty-two week low of $43.75 and a fifty-two week high of $87.60. The stock's 50-day simple moving average is $69.48 and its 200-day simple moving average is $63.09. The company has a debt-to-equity ratio of 0.66, a quick ratio of 3.15 and a current ratio of 3.15.

LandBridge (NYSE:LB - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The company reported $0.11 earnings per share for the quarter, missing analysts' consensus estimates of $0.55 by ($0.44). The firm had revenue of $51.01 million during the quarter, compared to analysts' expectations of $58.72 million. LandBridge had a net margin of 15.71% and a return on equity of 4.34%. LandBridge's quarterly revenue was up 16.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.37 EPS. As a group, equities research analysts forecast that LandBridge Company LLC will post 1.48 EPS for the current fiscal year.

LandBridge Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th will be issued a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Thursday, June 4th. LandBridge's dividend payout ratio is presently 49.48%.

LandBridge announced that its board has authorized a stock buyback plan on Wednesday, February 25th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the company to purchase up to 1% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's management believes its shares are undervalued.

About LandBridge

LandBridge Company LLC owns and manages land and resources to support and enhance oil and natural gas development in the United States. It owns surface acres in and around the Delaware Basin in Texas and New Mexico. The company holds a portfolio of oil and gas royalties. It also sells brackish water and other surface composite materials. The company was founded in 2021 and is based in Houston, Texas. LandBridge Company LLC operates as a subsidiary of LandBridge Holdings LLC.

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